Federated Looks to Sell Credit-Card Division
Cincinnati, Following in the footsteps of Sears, The Home Depot, Saks and Circuit City in past years, Federated Department Stores, Inc. has hired an outsider to explore the possible sale of its credit-card portfolio, which it shares with GE Credit Corp. The company enlisted Credit Suisse First Boston to review alternatives for its proprietary card business, according to a report from Dow Jones. Federated’s credit-card portfolio reportedly has receivables valued at roughly $3 billion.
REI to Expand Distribution Center
Sumner, Wash., Recreational Equipment Inc. (REI) plans to expand its distribution center here in Sumner, near the company’s Seattle headquarters.
The construction, scheduled to begin this month, will add 144,000 sq. ft. of floor space to the facility, which currently comprises 375,000 sq. ft. of floor space. Also, beginning next year, the retailer will upgrade the technology and equipment that move inventory throughout the facility.
Castagna Leaves JCPenney
Plano, Texas, Vanessa Castagna decided to leave JCPenney when her employment contract expires this Sunday, the retailer said today. Castagna was chairman and CEO of JCPenney stores, catalog and Internet. Her responsibilities will be held by Ken Hicks, president and COO of JCPenney stores and merchandise operations, until a permanent successor is found.
It was widely speculated that Castagna would leave JCPenney when she was passed over as the replacement for retiring company CEO Allen Questrom late last month. The job was instead given to Myron Ullman, who joined the retailer from LVMH and was once CEO of Macy’s.
Castagna has been with JCPenney since 1999.